Ministry of Finance of Republic of Indonesia : President Jokowi Signed Presidential Regulation Technical Guidelines for Special Allocation Fund of Physical Development

Jakarta, 17/01/2017 MoF - President Joko Widodo (Jokowi) signed a Presidential Regulation Number 123 Year 2016 concerning Technical Guidlines for Special Allocation Fund (DAK) of Physical Development on December 30, 2016.

As quoted from the Cabinet Secretariat site, Physical DAK is funds allocated in the State Budget (APBN) to certain regions aimed at supporting special physical activities that are considered as regional matters and in line with national priorities.

According to the Regulation, Heads of Regions allocate Physical DAK in the Local Government Budget (APBD) or in Revised APBD, while the section/subsection and upper limit mentioned in the APBD or Revised APBD will be implemented according to the details in the Physical DAK in each regions defined in the Presidential Regulation.

'If Presidential Regulation on the APBN details is received after General Provisions of Budget Priorities on Provisional Budget Ceiling is stipulated, allocation of Physical DAK will directly be put under APBD mechanism and implemented in accordance with the provisions of the law,' Article 4 paragraph (3, 4) of the Presidential Regulation says.

In the technical preparation of this Physical DAK as intended, Local Administration's Working Unit for Technical Matter (SKPD Teknis) in coordination with Provincial Development Planning Agency (Bappeda) formulates proposals of each Physical DAK.

Supervision and evaluation of Physical DAK management in regions will be conducted separately or jointly by the Minister of Finance, Ministers/Heads of Institutions, Minister of National Development Planning (PPN)/ Head of National Development Planning Agency, and Minister of Home Affairs.

This regulation is valid from the date of promulgation i.e. 30 December 2016 by the Ministry of Law and Human Rights Yasonna H. Laoly. (nr/rsa)